It's perfectly normal for an owner to collect a deposit on a month-to-month rental, just like a longer term.Check with IL law, but if the rental is month-to-month and not rent controlled, you can raise the rent any time you please with sufficient notice.  

The returns on investment for buying properties in my area are not sufficient for me to buy and hold?

Thanks for the great responses Scott and Joel - however I think I failed to articulate my question sufficiently enough.One of the important aspects that my investing partner and I look into with any new city is essentially where are all the jobs located?

And like @Marcia Maynard points out, a small token of appreciation (gift card) goes a long way to maintain the relationship.

At the same token, scaring them off, help weed out the problem people.  

Mold appears to be limited to drywall in a couple areas (wall behind a shower that was leaking and has been repaired, wall behind the washing machine).If remediation is $5k for a small job (pulling that out of the air), I doubt seasoned flippers routinely have this professionally remediated, especially when simply tearing out drywall/replacing/wiping down with bleach after correcting the moisture problem is sufficient to correct it.

A paid-up policy is when the cash value is sufficient to grow to become the death benefit by the time you reach your life expectancy AND it has enough cash to sustain the cost of insurance as well.

I feel you though.On the same token, don't get sucked in by analysis paralysis :).

So that's why I give 45 day notice,, this gives them sufficient time to think and respond that they will be accepting the new terms so if they can give me proper notice back by 1 day before the 1st of the month if they are going to vacate, This should be in your renewal notice.At that time if you have any other terms that will change regarding utilities then you let them know that as of same date utilities will be their responsibility and give them the proper information to make the switch for utilities.  

If you buy right and add sufficient value your traditional loan at 75% will pay off the private Note and you can roll the cost of the new loan into the new loan.You mentioned you and your wife both have 401k with work.